Dubai International Financial Centre (DIFC) and Mashreq Bank launched the first blockchain-based data-sharing platform on March 1st. The platform will allow licensed businesses from around the globe, to open a digital bank account instantly.
The blockchain-based platform is meant to eliminate paper-based verification processes, resulting in a more simple and faster way to open a new bank account and start a business in the United Arab Emirates.
According to the official statement, the platform is the first KYC (Know-Your-Customer) blockchain platform in the Middle East. The objective of the KYC is to identity theft, financial fraud or prevent terrorist financing. KYC allows financial institutions to manage risks by using customer identification and verification processes.
Arif Amiri, the CEO of DIFC, the leading financial hub for the Middle East, Africa and South Africa (MEASA) later revealed the program is a part of Emirates Blockchain Strategy 2021, which aims to capitalize on the blockchain technology to transform half of the government transactions into the blockchain platform by 2021. He said in the official report:
As we enter a new period of growth and expansion, our core focus on FinTech and blockchain are major steps on our journey towards transforming the future of finance.
Back in 2018, the government of UAE and Sheikh Al Maktoum confirmed a strategy for Emirates to become “Future Industry” and position themselves as a world leader in adopting the technology. The blockchain meant to be one of the key innovations, the country has chosen to focus on.
Following the initiative, focused on industry creation, international leadership, and government efficiency, the UAE plans to become the world’s first-ever country, whose goverment will partly operate on blockchain-based technology by 2021.